Adidas earns its stripes

THE UK arm of German sportswear giant Adidas (UK) managed to increase sales and profits last year despite a “difficult economic climate”.

The company, whose UK operations are based in Stockport, saw sales climb by 13.9% to £470m, while pre-tax profits jumped 26% to £14.7m.

Adidas (UK) distributes goods from its Hazel Grove base to the retail and sports trade across the UK. It has also been developing a network of company-owned stores.

Newly-filed accounts states that Adidas (UK) “maintained good relationships with our customers and continued to build business with them”.

It said that gross margins reduced due partly to a rise in distribution costs associated with higher sales. Staff costs also increased by around £1.5m, but the average number of staff working for the business grew by 80, with the biggest increase occurring in its distribution and retail arm.